Meridiam discloses details on North American fundraise

The infrastructure fund manager said in a letter to the California Department of Transportation that it has already held a first close on its debut North American infrastructure fund. Meridiam anticipates raising $1bn for the fund in the next 12 months.

Fund manager Meridiam Infrastructure reached a first close on $100 million for its debut North American infrastructure fund and expects to raise $1 billion in total commitments for the fund in the next 12 months.

This is according to a letter from Meridiam chief financial officer Emmanuel Rotat to the California Department of Transportation dated 6 October.

The letter was among the hundreds of pages of documents published yesterday by the department in accordance with disclosure requirements for the Presidio Parkway public-private partnership (PPP) in San Francisco. Meridiam and equity partner Hochtief placed the winning bid for Presidio.

Meridiam has committed up to $25 million for the Presidio project from its North America fund, which would make Presidio the first US investment for the fund.  The fund held a $100 million first close on 8 June, Rotat said in the letter.

The $100 million figure does not account for any additional capital commitments Meridiam has secured in the last four months. Nevertheless, it indicates that North American institutional investors, who typically favour funds focused on existing assets, do indeed have an appetite for a PPP investment strategy focused on new project development.

Since its founding in 2006, Meridiam has focused on providing capital to projects that involve the construction and maintenance of new infrastructure facilities, such as roads and hospitals.

Meridiam said in the financial proposal for Presidio that it manages $1.2 billion of equity commitments across its funds.

Those funds include Meridiam’s first infrastructure fund, which closed on €600 million in 2008, as well as the North America-focused infrastructure fund and a separate Europe-focused infrastructure fund for which the firm is targeting €1 billion.

Rotat did not mention anything about Meridiam's Europe-focused fund in his letter to the California Department of Transportation. However, a market source said the fund also reached a first close earlier this year on an initial amount of more than twice the North American fund's $100 million in inital commitments.